Finance:Asset-centricity
Asset-centricity is an approach to investing in the life sciences field with a focus on key assets, such as a pharmaceutical molecule that could form the basis for a novel new drug which has already been identified, rather than on discovering such assets through basic research & development.[1][2][3] The asset-centric investing model is an attempt to streamline the drug discovery process, based on the widely held belief that it has become too expensive.[2][4] It de-couples life sciences assets from the infrastructure necessary to develop them, with the goal of improving returns on invested capital.[5]
A typical asset-centric startup company would have a single asset, or sometimes two, with a team of experts, including drug developers, shared across a back-end structure and across a variety of portfolio life sciences companies. These team members would coalesce for specific, focused drug-discovery projects[2] The bulk of funding would support the development of the primary asset, with the rest supporting a secondary asset and infrastructure.[1][5][6][7]
History
The asset-centric model of investing was developed by Index Ventures, a venture capital firm.[7][8] Forms of the asset-centric model have subsequently been adopted by other life sciences investment firms such as Atlas Venture and Symphony Capital.[2]
Examples of Asset-Centric companies
Examples of life sciences companies built on the asset-centric investing model include:
- Aegerion Pharmaceuticals (NASDAQ: AEGR)[2]
- Arteas Therapeutics (acquired by Eli Lilly)[9][10]
- OncoEthix (acquired by Merck & Co.)[2]
- Pangenetics (acquired by AbbVie)[2]
- XO1 Limited (acquired by Janssen Pharmaceuticals)[11]
References
- ↑ 1.0 1.1 "Decentralising drug research". The Economist. May 24, 2014. https://www.economist.com/news/business/21602689-why-row-over-giant-drug-company-takeovers-misses-point-pharmed-out.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "Venture capitalists ride biotech wave one drug at a time". Reuters. April 10, 2015. https://www.reuters.com/article/biotech-funding-idUSL6N0WT3XX20150410.
- ↑ "Atlas Venture unveils a $280M pure play biotech startup fund". FierceBiotech. April 17, 2015. http://www.fiercebiotech.com/story/atlas-venture-unveils-280m-biotech-startup-fund/2015-04-17.
- ↑ "Why drugs are expensive: It’s the science, stupid.". Scientific American. January 6, 2014. http://blogs.scientificamerican.com/the-curious-wavefunction/why-drugs-are-expensive-ite28099s-the-science-stupid/.
- ↑ 5.0 5.1 "The Lone Biotech Bear?". Forbes. January 21, 2015. https://www.forbes.com/sites/davidgrainger/2015/01/21/the-lone-biotech-bear/#3f8437b26563.
- ↑ "Glaxo Joins J&J in $200 Million Fund With Index Ventures". Bloomberg News. March 21, 2012. https://www.bloomberg.com/news/articles/2012-03-21/glaxo-joins-j-j-in-200-million-fund-with-index-ventures.
- ↑ 7.0 7.1 "Index Ventures adds big pharma to asset-centric model". EPVantage. March 21, 2012. http://www.epvantage.com/Universal/View.aspx?type=Story&id=283887&isEPVantage=yes.
- ↑ "Index Ventures appoints antibody expert as partner". MedNous. September 3, 2010. http://www.mednous.com/appointment/index-ventures-appoints-antibody-expert-partner.
- ↑ "Lilly buys back a migraine therapy from Arteaus Therapeutics". FierceBiotech. January 13, 2014. http://www.fiercebiotech.com/story/lilly-buys-back-migraine-therapy-arteaus-therapeutics/2014-01-13.
- ↑ "Asset-Centric Milestone". BioCentury. January 20, 2014. http://www.biocentury.com/biotech-pharma-news/finance/2014-01-20/lilly-arteaus-deal-provides-atlas-venture-with-first-asset-centric-graduation-a13.
- ↑ "J&J stays mum about cash, but biotech buyout is a landmark win for Index fund". FierceBiotech. March 18, 2015. http://www.fiercebiotech.com/story/lilly-buys-back-migraine-therapy-arteaus-therapeutics/2014-01-13.
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